Increased Standardized Expenses for Freelancers from February 1

The deadline for filing and paying taxes on income earned in the fourth quarter of 2025 is Friday, January 30. This applies to individuals earning income from copyrights or contracts for services, who pay taxes through self-assessment.

This taxation system primarily applies to freelancers – a large number of people working outside traditional employment, often for domestic and international clients, reporting their income independently.

How to Submit a Tax Return

According to the Tax Administration, the tax return is submitted electronically using the PP OPO-K form via the ePorezi or Frilenseri portals.

What Changes from February 1

In addition to the Q4 deadline, freelancers will face changes effective from February 1, regarding reporting income and paying taxes for Q1 2026.
According to the Law on Personal Income Tax, new standardized expense amounts have been published, directly affecting tax and contribution obligations.

Two Taxation Models Available to Freelancers

Tax experts note that freelancers still have two taxation models available, depending on income levels and individual circumstances.

Model 1:

• Standardized expenses: 110,647 RSD (up from 107,738 RSD).

• This amount is deducted from the total gross quarterly income, and the remaining income is taxed at 20%.

• Pension and disability contributions: 24%, health insurance: 10.3% (unless already covered under another basis).

• If quarterly income does not exceed standardized expenses, no tax is due, but contributions are still required.

Model 2:

• Fixed standardized expenses: 66,733 RSD (up from 64,979 RSD) + 34% of gross quarterly income.

• Tax is calculated at 10% on the remaining base, making this model advantageous for freelancers with higher and more stable income.

• Pension and disability contributions: 24% (mandatory), base cannot be lower than three times the minimum monthly base. Health insurance contributions are only required if the freelancer is not covered under another basis.

How to Choose the Right Model

The choice usually depends on income structure, frequency of engagements, and personal plans.
Freelancers with smaller or irregular income tend to choose Model 1, while those with higher and stable income often choose Model 2 due to a lower tax rate and better ratio between obligations and income.

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